IDBI first state-run bank to open branch at IFSC

IDBI Bank on May 6 became the first state-run lender to open an international banking unit (IBU) at the International Financial Services Centre (IFSC) in Gandhinagar.

Inaugurating the branch, the head of IDBI Kishor Kharat said that he is confident that the IFSC unit would significantly enhance the bank's global financing business.

The branch would provide full range of corporate banking services and would meet foreign currency funding needs of its clientele.

Managing Director of GIFT City Ajay Pandey said, they expect some more state-run banks to begin their operations soon. Four private sector banks have already begun operations at the IFSC.

"A conservative estimate suggests that around USD 50 billion worth of international business is conducted outside the country annually in the absence of an IFSC. We are confident that at the pace at which we are progressing today, in the next few years, GIFT City will be able to retain a lot of this business which is now going out," Pandey said.

So far, GIFT City has made allotments of over 15 million sq ft built up area in the SEZ and non-SEZ area for office towers, residential apartments and social facilities to be developed at an estimated total investment of over Rs 10,000 crore.

Over the past six months, over USD 250 million worth of business transactions were conducted at GIFT City.

Earlier this week, Kotak Mahindra Bank opened its branch at the IFSC, becoming the fourth bank to open its IFSC banking unit at the Gujarat International Finance Tec-City (GIFT City).

Yes Bank, Federal Bank and ICICI Bank have been operating branches at the IFSC for several months now.

An international banking unit allows a domestic bank to deliver a complete range of products to its clients with foreign currency funding requirements. The IFSC was launched in April, 2015.